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AfDB, IDB sign new US $ 2 billion deal to fund energy, SMEs

The African Development Bank (AfDB) and the Islamic Development Bank (IsDB) have signed a landmark agreement to strengthen partnership at country level. Both parties have agreed to jointly pull together the sum of US $2 billion over the next three years to finance projects in agriculture and food security, renewable energy, small and medium enterprises, and human development (health and education). To realize the shared objective of the agreement, the IsDB and the Bank agreed to each contribute US $1 billion over three years for joint activities focusing on these priority areas and sectors. Speaking at the agreement signing ceremony at the AfDB headquarters in Abidjan, President of the African Development Bank, Akinwumi Adesina reaffirmed the Bank’s commitment and interest to build a stronger partnership with the Islamic Development Bank. The IsDB will also engage with the Bank to implement the High 5s- the five areas in which the AfDB is focusing on to help accelerate Africa's economic transformation. “Today’s meeting is about collaboration and partnership. AfDB and IsDB share common traits and the agreement we are signing is the highest with any development bank. We are very excited about the range of things we can do together and we are ready to work with you to move this movement,” Adesina said. “We are going to work on a pipeline of projects in Africa stretching from agriculture to SMES, energy and human development. We need to create jobs for our women and youth.” IsDB is among the largest contributors of co-financing to the Bank. The Bank and IsDB have co-financed projects valued at over US$ 2.5 billion for the period 2002—2016. The AfDB has a country presence in 21 out of the 27 common member countries with IsDB. As part of the new agreement, AfDB and IsDB are to complement and make use of each other’s staff expertise at country-level.